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China's Inflation Eases in November as Economy Holds Steady

CHINA - China's consumer inflation slowed more than expected in November, and producer inflation at the factory gate fell sharply, leaving room for prudent monetary policy to be maintained.

The consumer price index (CPI), a main gauge of inflation, rose 1.7 per cent year-on-year in November, down from October's 1.9 per cent, and missing the market forecast of 1.8 per cent, the National Bureau of Statistics (NBS) said Saturday.

The CPI has grown at less than 2 per cent for ten straight months, pointing to mild inflation in the world's second-largest economy.

NBS statistician Sheng Guoqing attributed the slowdown in CPI to a decrease in food prices, which account for a significant part of the CPI calculation.

Food prices fell 1.1 per cent in November year-on-year, 0.7 percentage point more than the decline registered in October. Pork prices slumped 9 per cent, dragging down the CPI growth by 0.25 percentage points.